Technology Explained

Understanding How Open Source Software Developers Make Money

Joel Lee 20-09-2014

There are many myths about open source software What Is Open Source Software? [MakeUseOf Explains] "Open source" is a term that’s thrown around a lot these days. You may know that certain things are open source, like Linux and Android, but do you know what it entails? What is open... Read More (OSS) and perhaps the most common is this: open source and profit are mutually exclusive. Surely there are those who believe that all software should be open and free, but they are a minority (not dissimilar to art purists).


The truth is: many OSS developers and projects do generate revenue. Some earn just enough money to survive while others produce so much money that they put proprietary alternatives to shame. How’s that for irony?

That being said, profiting as an OSS developer does require a slight paradigm shift. Rather than seeing your software as the product itself, the trick is to see your software as a platform or catalyst that paves the way for other revenue streams.

Offer Support and Services

By far the most common method of income is to provide a service alongside the OSS product. Pick any OSS project from random and there’s a good chance that they utilize this method in one way or another.

Understanding How Open Source Software Developers Make Money open source software support

Compiled binaries. Despite releasing your source code for free, you can always find potential users who want to use your software but don’t have the knowledge, time, or energy to compile it on their own. These users are often willing to pay you to compile your own code on their behalf.


Maintenance services. You know your software the best. You can sell that expertise to users in the form of services that save them time and frustration. Most companies value their time more than their money so this is a great way to go, especially for server-based software. Paid installation and setup, or on-call administrative support are two prime examples.

Lectures and workshops. If your software is deeply complex with a steep learning curve, companies may hire you to teach their employees directly. Or, if your software is popular enough, you could hold workshops for individuals who want to learn everything from the basics to the most advanced aspects.

Sell Instructional Material

Users of OSS tend to be those who are self-taught lone wolves. They want to pick through your code and discover everything at their own pace. For these users, lectures and workshops are off the table; instead, they prefer hands-on material.

You can sell this material to them and they’ll probably pay for it.


Understanding How Open Source Software Developers Make Money open source software support 2

Documentation. Many OSS projects include documentation for free and there’s nothing wrong with that. However, good documentation is time-consuming to produce and incredibly valuable, so much so that it may deserve a price tag. For those who don’t want to pay, they can always scour the source code itself.

Tutorials and examples. If paid documentation doesn’t sit well with you, you can always release it for free and then charge for tutorial resources. This applies more for complex frameworks like game engines and not so much for singular applications.

Paid Plugins and Enhancements

Depending on the open source license Open Source Software Licenses: Which Should You Use? Did you know that not all open source licenses are the same? Read More that binds a particular OSS project, you can mix and match an open platform with paid extensions or improvements. This may sound like it’s cheating the OSS philosophy but it’s more common than you think.


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Paid extensions. Consider one of the most successful web systems, WordPress. It’s offered free of charge for anyone to use and modify, but there are plenty of WordPress professionals 6 Steps to Become a WordPress Professional Want to make a living from Wordpress? There are many ways to go about it: designing themes, coding plugins - but it's especially hard to distinguish yourself and find potential clients. Read More who make a living by creating and selling WordPress plugins. You can offer the base software for free and sell your own extensions for advanced features.

Another example is the Unity game engine 5 Free Game Development Software Tools to Make Your Own Games Free game development software is a great way to start video game making. We've compiled the best game software on the market. Read More , which is available in free and paid versions. However, in addition, there is the Unity Asset Store which is a central marketplace where users can create and sell plugins for others to use. Unity gets a cut of each sale and all of those individual sales do add up over time.

Enterprise versions. Offering your product in a free and paid version is nothing new and it’s entirely legitimate for OSS products, too. In most cases, the free version is open source while the paid version is closed source, but it doesn’t necessarily have to be that way.


JetBrains, a company that specializes in feature-rich programming IDEs, likes this approach. For example, they offer PyCharm for free as an open source “Community” version and a more advanced “Enterprise” version with additional features.

Secure Corporate Sponsors

It may be the case that a company or benefactor likes your software so much that they will pay you long-term to keep working on it, essentially becoming your sponsor. Depending on the circumstance, said sponsorship may be contractually-bound or simply based on donations, though the latter is less likely.

Another means of sponsorship is crowdfunding. You may not find too much success with OSS on a site like Kickstarter, but there are alternatives with an open source focus: FreedomSponsors and BountySource come to mind.

Or, if you’d prefer to maintain full control over your campaign, you could always crowdfund from your own website Forget Kickstarter: How To Crowdfund From Your Own Website Crowdfunding has taken off in a big way in the past few years. But you don't need to use a service like Kickstarter if you're already running your own popular website. Read More .

These aren’t the only ways to earn money as an OSS developer but they’ve been proven successful time and time again. Admittedly, it might be tougher to earn revenue with OSS, but it’s certainly not impossible.

How else can an open source developer make money? Share your thoughts with us in the comments below!

Image Credit: Source Code via Shutterstock, Portrait Of Happy Young Female Operator With Headphones, closeup hand on the book in library, Young software engineer working in office with headphones on his head

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  1. MikeK
    January 23, 2019 at 2:46 pm

    As a developer I am working on several projects in parallel. I write easily understandable code and when I write a bit of complex functionality I try to simplify afterward to make the software more easily maintainable. Creating an executable and deploying it is easy too. Thanks to all kinds of make and build tools. Besides my programs are easy to understand and intuitive. So my time is constrained and there is hardly any demand for support. OK, some bug fixing. What do I do? Ditch my software development skills and start writing hard to understand and maintain code that will generate revenue?

  2. Jason
    February 8, 2015 at 7:02 am

    I went with Kickstarter developing hardware, and I created software that programmed it over USB. I reached my goal in about 20 days, and it's right about 145% funded.

    My advice is to create a solution that solves or simplifies the complexity of a problem.

    For me, I created a microchip programmer, open source software firmware and a VB dot Net app to program the hardware unit to make programming a microcontroller as easy as possible for end users.

    I also reached my goal without advertising. If a product you offer is good and solves a problem they're facing, they'll flock to you to get the solution.

    • Joel
      February 13, 2015 at 7:31 pm

      Yeah, I think that's the problem with Kickstarter: you need to fill a niche that's small enough to not have any competition but large enough that there are enough people to fund your goal. I'm glad you managed success there!

  3. rxantos
    October 8, 2014 at 12:29 am

    But by far the ones that make money are not the ones making the open source but using the open source internally.

    For example, Google, Yahoo, etc, etc. etc.

    Another way is to bundle open source and put proprietary art so that they cannot be simply copied over (For example RedHat, although to their defense they do offer Fedora as a free alternative).

    At the end of they those who make the money are not those creating the software. But those who leverage on the software that others create.

    • Joel
      February 13, 2015 at 7:29 pm

      Good points, especially the part about "open source but proprietary assets" which makes a lot of sense, especially for video games.

  4. ed
    September 21, 2014 at 9:08 pm

    I often thought many open source projects were done by people or teams that had other sources of income or full-time work, thereby making these projects their "labor of love" so-to-speak.

    This is unless it is some entity like Canonical or the Linux Mint team that makes money through wealthy investors, support, donations or for-profit projects related to the open-source project like selling hardware or something similar.

    • Joel L
      September 25, 2014 at 12:32 am

      Definitely, I think it's true that many OSS projects are freetime labors of love. This article was more intended to address those who think that OSS can't be anything but labors of love. People can certainly profit if they are smart about it.

  5. Josemon M
    September 21, 2014 at 3:20 am

    there are thousands of people donating for open source software

    • Joel L
      September 25, 2014 at 12:31 am

      Absolutely. If you can build a loyal userbase who can't live without your software, some of them will donate to keep you afloat. Some will donate a LOT. The difficulty is building that loyalty. :)